2 COLORADO BASIC FINANCIAL STATEMENTS

UNAUDITED

STATE OF COLORADO

BASIC FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2016

CONTENTS

Page

BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements:

Statement of Net Position Statement of Activities

Fund Financial Statements:

Balance Sheet – Governmental Funds

Reconciliation of the Balance Sheet to the

Statement of Net Position

Statement of Revenues, Expenditures, and

Changes in Fund Balances – Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances to the Statement of Activities

Statement of Net Position – Proprietary Funds

Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds

Statement of Cash Flows – Proprietary Funds

Statement of Fiduciary Net Position – Fiduciary Funds

Statement of Changes in Fiduciary Net Position – Fiduciary Funds

Statement of Net Position – Component Units

Statement of Revenues, Expenses, and Changes in Fund Net Position – Component Units

Statement of Revenues, Expenses, and Changes in Net Position – Component Units

Recast to the Statement of Activities Format

Notes to the Financial Statements

Notes 1 Through 7 – Summary of Significant Accounting Policies

Note 1 – Government-Wide Financial Statements

Note 2 – Reporting Entity

Note 3 – Basis of Presentation – Government-Wide Financial Statements

Note 4 – Basis of Presentation – Fund Financial Statements

Note 5 – Basis of Accounting

Note 6 – Accounting Policies Affecting Specific Assets, Liabilities, and Net Position

Note 7 – Accounting Policies Affecting Revenues, Expenditures/Expenses

Note 8 – Stewardship, Accountability, and Legal Compliance

Notes 9 Through 17 – Details of Asset Items

Note 9 – Cash and Pooled Cash

Note 10 – Noncash Transactions in the Proprietary Fund Types

Note 11 – Receivables

Note 12 – Inventory

Note 13 – Prepaids, Advances, and Deferred Charges

Note 14 – Investments

COLORADO BASIC FINANCIAL STATEMENTS 3

Note 15 – Treasurer’s Investment Pool

Note 16 – Other Long-Term Assets

Note 17 – Capital Assets

Notes 18 Through 27 – Details of Liability Items

Note 18 – Pension System and Obligations

Note 19 – Other Postemployment Benefits and Life Insurance

Note 20 – Other Employee Benefits

Note 21 – Risk Management

Note 22 – Lease Commitments

Note 23 – Short-Term Debt

Note 24 – Notes, Bonds, and Certificates of Participation Payable

Note 25 – Changes in Long-Term Liabilities

Note 26 – Defeased Debt

Note 27 – Pollution Remediation Obligations

Note 28 – Deferred Inflows and Outflows of Resources

Notes 29 Through 32 – Details of Net Position and Fund Balance

Note 29A – Prior Period Adjustments

Note 29B – Accounting Changes

Note 30 – Fund Balance

Note 31 – Stabilization Arrangements

Note 32 – Minimum Fund Balance Policies

Note 33 – Interfund Receivables and Payables

Note 34 – Transfers Between Funds

Note 35 – Donor Restricted Endowments

Note 36 – Pledged Revenue

Note 37 – Segment Information

Note 38 – Component Units

Note 39 – Related Parties and Organizations

Note 40 – Service Concession Arrangements

Note 41 – Encumbrances

Note 42 – Financial Guarantees

Note 43 – Contingencies

Note 44 – Subsequent Events

REQUIRED SUPPLEMENTARY INFORMATION:

Budget and Actual Schedules – Budgetary Basis:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Appropriated General Funded

Schedule of Revenues, Expenditures/Expenses, and

Changes in Fund Balances/Net Position – Appropriated Cash Funded

Schedule of Revenues, Expenditures/Expenses, and Changes in Fund Balances/Net Position – Appropriated Federally Funded

Reconciling Schedule All Budget Fund Types to All GAAP Fund Types

General Fund Schedule of Revenues, Expenditures, and Changes in General Fund Surplus – Budget and Actual – Budgetary Basis

Notes to Required Supplementary Information:

Note RSI-1 Budgetary Information

Note RSI-2 The State’s Defined Benefit Pension Plan

Note RSI-3 Other Postemployment Benefit Information

4 COLORADO BASIC FINANCIAL STATEMENTS

COLORADO BASIC FINANCIAL STATEMENTS 5

STATEMENT OF NET POSITION

JUNE 30, 2016

PRIMARY GOVERNMENT

(DOLLARS IN THOUSANDS) GOVERNMENTAL BUSINESS-TYPE COMPONENT

ACTIVITIES ACTIVITIES TOTAL UNITS

ASSETS:

Current Assets:

Cash and Pooled Cash 2,704,782$ 2,523,993$ 5,228,775$ 254,572$

Investments - 392,188 392,188 -

Taxes Receivable, net 1,251,652 123,640 1,375,292 -

Contributions Receivable, net - - - 50,308

Other Receivables, net 570,044 640,666 1,210,710 81,691

Due From Other Governments 440,259 93,271 533,530 3,444

Internal Balances 27,525 (27,525) - -

Due From Component Units 347 18,188 18,535 -

Inventories 53,261 54,748 108,009 -

Prepaids, Advances and Deposits 67,526 28,756 96,282 4,251

Total Current Assets 5,115,396 3,847,925 8,963,321 394,266

Noncurrent Assets:

Restricted Assets:

Restricted Cash and Pooled Cash 1,923,920 458,392 2,382,312 122,333

Restricted Investments 732,662 167,540 900,202 158,737

Restricted Receivables 510,028 40,009 550,037 2,532

Investments 218,249 1,941,040 2,159,289 2,397,239

Contributions Receivable, net - - - 101,160

Other Long-Term Assets 675,292 129,425 804,717 900,763

Depreciable Capital Assets and Infrastructure, net 9,984,922 7,058,643 17,043,565 169,621

Land and Nondepreciable Capital Assets 1,842,031 1,651,352 3,493,383 24,994

Depreciable Capital Assets for Investment 33,055 - 33,055 -

Total Noncurrent Assets 15,920,159 11,446,401 27,366,560 3,877,379

TOTAL ASSETS 21,035,555 15,294,326 36,329,881 4,271,645

DEFERRED OUTFLOW OF RESOURCES: 880,788 653,559 1,534,347 3,715

LIABILITIES:

Current Liabilities:

Tax Refunds Payable 856,076 - 856,076 -

Accounts Payable and Accrued Liabilities 1,163,774 771,690 1,935,464 25,250

TABOR Refund Liability (Note 8B) 45,258 - 45,258 -

Due To Other Governments 231,130 39,081 270,211 200

Due To Component Units - 645 645 -

Unearned Revenue 123,769 305,472 429,241 -

Accrued Compensated Absences 11,522 22,761 34,283 -

Claims and Judgments Payable 46,343 - 46,343 -

Leases Payable 29,079 9,132 38,211 -

Notes, Bonds, and COPs Payable 170,995 267,134 438,129 46,395

Other Current Liabilities 29,525 139,765 169,290 166,201

Total Current Liabilities 2,707,471 1,555,680 4,263,151 238,046

Noncurrent Liabilities:

Deposits Held In Custody For Others 90 20 110 395,892

Accrued Compensated Absences 154,510 293,365 447,875 -

Claims and Judgments Payable 276,010 39,657 315,667 -

Capital Lease Payable 141,444 47,994 189,438 -

Derivative Instrument Liability - 13,222 13,222 -

Notes, Bonds, and COPs Payable 1,154,797 4,480,091 5,634,888 602,513

Due to Component Units - 1,631 1,631 -

Net Pension Liability 6,293,208 3,956,740 10,249,948 3,333

Other Postemployment Benefits - 289,133 289,133 -

Other Long-Term Liabilities 415,669 28,569 444,238 60,767

Total Noncurrent Liabilities 8,435,728 9,150,422 17,586,150 1,062,505

TOTAL LIABILITIES 11,143,199 10,706,102 21,849,301 1,300,551

DEFERRED INFLOW OF RESOURCES: 106,439 247,973 354,412 405

NET POSITION:

Net investment in Capital Assets: 11,387,895 5,067,665 16,455,560 194,126

Restricted for:

Construction and Highway Maintenance 966,743 - 966,743 -

Education 309,957 462,636 772,593 -

Unemployment Insurance - 739,087 739,087 -

Debt Service 68,105 85,617 153,722 -

Emergencies 217,328 34,000 251,328 -

Permanent Funds and Endowments:

Expendable 5,801 157,611 163,412 1,072,592

Nonexpendable 950,976 83,274 1,034,250 867,679

Other Purposes 735,776 101,209 836,985 632,764

Unrestricted (3,975,876) (1,737,289) (5,713,165) 207,243

TOTAL NET POSITION 10,666,705$ 4,993,810$ 15,660,515$ 2,974,404$

The notes to the financial statements are an integral part of this statement.

6 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2016

Expenses Program Revenues

(DOLLARS IN THOUSANDS) Indirect Operating Capital

Cost Charges for Grants and Grants and

Functions/Programs Expenses Allocation Services Contributions Contributions

Primary Government:

Governmental Activities:

General Government 501,947$ (22,216)$ 151,844$ 198,645$ 3,050$

Business, Community, and

Consumer Affairs 767,434 2,116 145,016 308,521 -

Education 5,855,142 1,395 22,546 644,027 -

Health and Rehabilitation 2,884,543 2,718 102,439 1,764,280 -

Justice 2,115,633 5,886 240,513 114,581 56

Natural Resources 131,770 1,168 146,495 79,107 -

Social Assistance 8,819,078 2,003 912,678 5,330,478 -

Transportation 1,809,886 1,869 451,784 138,361 816,215

Interest on Debt 61,739 - - - -

Total Governmental Activities 22,947,172 (5,061) 2,173,315 8,578,000 819,321

Business-Type Activities:

Higher Education 6,444,484 2,830 4,305,673 1,835,957 53,690

Unemployment Insurance 529,922 - 606,417 41,644 -

Lottery 516,952 647 596,052 813 -

Parks and Wildlife 199,353 928 154,070 34,746 (187)

College Assist 320,608 114 8 346,167 -

Other Business-Type Activities 284,235 542 275,126 189,047 -

Total Business-Type Activities 8,295,554 5,061 5,937,346 2,448,374 53,503

Total Primary Government 31,242,726 - 8,110,661 11,026,374 872,824

Component Units:

Colorado Water Resources and

Power Development Authority 47,017 33,610 50,899

University of Colorado Foundation 132,224 149,999

Colorado State University Foundation 54,998 71,473

Colorado School of Mines Foundation 38,665 1,900 31,862

University of Northern Colorado Foundation 12,288 15,087

Other Component Units 15,557 10,832 219 2,084

Total Component Units 300,749$ -$ 46,342$ 319,539$ 2,084$

General Revenues:

Taxes:

Sales and Use Taxes

Excise Taxes

Individual Income Tax

Corporate Income Tax

Other Taxes

Restricted for Education:

Individual Income Tax

Corporate and Fiduciary Income Tax

Restricted for Transportation:

Fuel Taxes

Other Taxes

Unrestricted Investment Earnings (Losses)

Other General Revenues

Payment from State of Colorado

Special Items (See Note 41)

(Transfers-Out) / Transfers-In

Internal Capital Contributions

Permanent Fund Additions

Total General Revenues, Special Items, and Transfers

Change in Net Position

Net Position - Fiscal Year Beginning

Prior Period Adjustment (See Note 29A)

Accounting Changes (Note 29B)

Net Position - Fiscal Year Ending

COLORADO BASIC FINANCIAL STATEMENTS 7

Governmental Business-Type Component

Activities Activities Total Units

(126,192)$ -$ (126,192)$

(316,013) - (316,013)

(5,189,964) - (5,189,964)

(1,020,542) - (1,020,542)

(1,766,369) - (1,766,369)

92,664 - 92,664

(2,577,925) - (2,577,925)

(405,395) - (405,395)

(61,739) - (61,739)

(11,371,475) - (11,371,475)

- (251,994) (251,994)

- 118,139 118,139

- 79,266 79,266

- (11,652) (11,652)

- 25,453 25,453

- 179,396 179,396

- 138,608 138,608

(11,371,475) 138,608 (11,232,867)

- - - 37,492

- - - 17,775

- - - 16,475

- - - (4,903)

- - - 2,799

- - - (2,422)

- - - 67,216

2,940,839 - 2,940,839 -

290,276 - 290,276 -

6,061,679 - 6,061,679 -

643,761 - 643,761 -

410,277 - 410,277 -

474,623 - 474,623 -

47,977 - 47,977 -

609,678 - 609,678 -

409 - 409 -

15,705 - 15,705 36,758

107,003 - 107,003 -

(352,553) 352,553 - -

(1,583) 10,130 8,547 -

80 - 80 -

11,248,171 362,683 11,610,854 36,758

(123,304) 501,291 377,987 103,974

10,796,794 4,497,828 15,294,622 2,873,456

(6,785) (5,309) (12,094) -

- (0) (0) (3,026)

10,666,705$ 4,993,810$ 15,660,515$ 2,974,404$

Primary Government

Changes in Net Position

Net (Expense) Revenue and

8 COLORADO BASIC FINANCIAL STATEMENTS

BALANCE SHEET

GOVERNMENTAL FUNDS

JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHWAY

RESOURCE USERS

GENERAL EXTRACTION TAX

ASSETS:

Cash and Pooled Cash 274,701$ 756,012$ 56,696$

Taxes Receivable, net 1,435,618 - (1)

Other Receivables, net 427,763 23,582 3,272

Due From Other Governments 397,688 2,551 -

Due From Other Funds 86,694 18,899 5,033

Due From Component Units 347 - -

Inventories 7,522 35,868 8,860

Prepaids, Advances and Deposits 38,147 18,546 1,252

Restricted Assets:

Restricted Cash and Pooled Cash 427,861 109,772 752,176

Restricted Investments - - -

Restricted Receivables 56,851 - 453,177

Investments 22,176 - -

Other Long-Term Assets (49) 417,554 12,150

Depreciable Capital Assets and Infrastructure, net (9) - 30

Land and Nondepreciable Capital Assets - - -

Capital Assets Held as Investments - - -

TOTAL ASSETS 3,175,310$ 1,382,784$ 1,292,645$

LIABILITIES:

Tax Refunds Payable 849,726$ - 4,860$

Accounts Payable and Accrued Liabilities 756,988 16,404 203,740

TABOR Refund Liability (Note 8B) 45,258 - -

Due To Other Governments 128,481 40,748 34,195

Due To Other Funds 117,950 3,911 634

Unearned Revenue 26,347 9,222 16,834

Compensated Absences Payable 27 1 -

Claims and Judgments Payable 248 - -

Other Current Liabilities 17,904 - 28

Deposits Held In Custody For Others 2 - -

TOTAL LIABILITIES 1,942,931 70,286 260,291

DEFERRED INFLOW OF RESOURCES: 219,310 - 933

FUND BALANCES:

Reserved for:

Nonspendable:

Long-term Portion of Interfund Loans Receivable (9) - 30

Inventories 7,522 35,868 8,860

Permanent Fund Principal - - -

Prepaids 38,035 18,546 1,252

Restricted 497,814 66,000 974,931

Committed 451,386 1,192,084 46,348

Assigned 18,321 - -

TOTAL FUND BALANCES 1,013,069 1,312,498 1,031,421

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES $ 3,175,310 $ 1,382,784 $ 1,292,645

COLORADO BASIC FINANCIAL STATEMENTS 9

OTHER

CAPITAL STATE GOVERNMENTAL

PROJECTS EDUCATION FUNDS TOTAL

389,655$ -$ 1,182,074$ 2,659,138$

- - 36,428 1,472,045

164 - 114,359 569,140

1,741 - 38,015 439,995

50,456 - 11,743 172,825

- - - 347

- - 299 52,549

34 113 5,354 63,446

- 311,476 322,635 1,923,920

- - 732,662 732,662

- - - 510,028

3,170 - 192,903 218,249

49 - 24,294 453,998

- - - 21

- - 69,160 69,160

- - 33,055 33,055

445,269$ 311,589$ 2,762,981$ 9,370,578$

-$ -$ 1,490$ 856,076$

9,023 7,149 130,769 1,124,073

- - - 45,258

- - 27,706 231,130

1,342 - 35,723 159,560

6 - 59,420 111,829

- - 6 34

- - 140 388

- - 6,879 24,811

- - 88 90

10,371 7,149 262,221 2,553,249

- - 867 221,110

- - 19,141 19,162

- - 298 52,548

- - 1,043,619 1,043,619

32 114 5,354 63,333

5 304,326 255,870 2,098,946

434,861 - 1,175,611 3,300,290

- - - 18,321

434,898 304,440 2,499,893 6,596,219

$ 445,269 $ 311,589 $ 2,762,981 $ 9,370,578

10 COLORADO BASIC FINANCIAL STATEMENTS

DEFERRED OUTFLOW OF RESOURCES: - 58,747 - 822,041 - - - 880,788

LIABILITIES:

Current Liabilities:

Tax Refunds Payable 856,076 - - - - - - 856,076

Accounts Payable and Accrued Liabilities 1,124,073 32,760 - 6,941 - - - 1,163,774

TABOR Refund Liability (Note 8B) 45,258 - - - - - - 45,258

Due To Other Governments 231,130 - - - - - - 231,130

Due To Other Funds 159,560 4,521 - - - - (164,081) -

Unearned Revenue 111,829 12,113 - - - (173) - 123,769

Compensated Absences Payable 34 427 - - - 11,061 - 11,522

Claims and Judgments Payable 388 - - - 37,453 8,502 - 46,343

Leases Payable - 20,214 - 8,865 - - - 29,079

Notes, Bonds, and COPs Payable - - - 170,995 - - - 170,995

Other Current Liabilities 24,811 270 - - - 4,444 - 29,525

Total Current Liabilities 2,553,159 70,305 - 186,801 37,453 23,834 (164,081) 2,707,471

Noncurrent Liabilities:

Deposits Held In Custody For Others 90 - - - - - - 90

Accrued Compensated Absences - 9,792 - - - 144,718 - 154,510

Claims and Judgments Payable - - - - 121,146 154,864 - 276,010

Capital Lease Payable - 85,338 - 56,106 - - - 141,444

Notes, Bonds, and COPs Payable - - - 1,154,797 - - - 1,154,797

Net Pension Liability - 364,594 - - - 5,928,614 - 6,293,208

Other Long-Term Liabilities - - - - - 415,669 - 415,669

Total Noncurrent Liabilities 90 459,724 - 1,210,903 121,146 6,643,865 - 8,435,728

TOTAL LIABILITIES 2,553,249 530,029 - 1,397,704 158,599 6,667,699 (164,081) 11,143,199

DEFERRED INFLOW OF RESOURCES: 221,110 4,585 - - - (119,256) - 106,439

NET POSITION:

Net investment in Capital Assets: 102,236 26,880 11,625,340 (366,561) - - - 11,387,895

Restricted for:

Construction and Highway Maintenance 966,411 - - 332 - - - 966,743

Education 309,957 - - - - - - 309,957

Debt Service 68,105 - - - - - - 68,105

Emergencies 217,328 - - - - - - 217,328

Permanent Funds and Endowments:

Expendable 5,801 - - - - - - 5,801

Nonexpendable 950,976 - - - - - - 950,976

Other Purposes 735,776 - - - - - - 735,776

Unrestricted 3,239,629 (299,930) - (209,434) (158,599) (6,547,542) - (3,975,876)

TOTAL NET POSITION 6,596,219$ (273,050)$ 11,625,340$ (575,663)$ (158,599)$ (6,547,542)$ -$ 10,666,705$

The notes to the financial statements are an integral part of this statement.

GOVERNMENTAL FUNDS BALANCE SHEET

RECONCILED TO

STATEMENT OF NET POSITION

JUNE 30, 2016

(A) (B) (C) (D) (E) (F)

(DOLLARS IN THOUSANDS) CENTRALIZED OTHER

TOTAL INTERNAL CAPITAL DEBT RISK MEASUREMENT INTERNAL STATEMENT OF

GOVERNMENTAL SERVICE ASSET RELATED MANAGEMENT FOCUS BALANCES NET POSITION

FUNDS FUNDS BALANCES BALANCES LIABILITIES ADJUSTMENTS ELIMINATION TOTALS

ASSETS:

Current Assets:

Cash and Pooled Cash 2,659,138$ 45,644$ -$ -$ -$ -$ -$ 2,704,782$

Taxes Receivable, net 1,472,045 - - - - (220,393) - 1,251,652

Other Receivables, net 569,140 904 - - - - - 570,044

Due From Other Governments 439,995 264 - - - - - 440,259

Due From Other Funds 172,825 18,781 - - - - (164,081) 27,525

Due From Component Units 347 - - - - - - 347

Inventories 52,549 712 - - - - - 53,261

Prepaids, Advances and Deposits 63,446 4,080 - - - - - 67,526

Total Current Assets 5,429,485 70,385 - - - (220,393) (164,081) 5,115,396

Noncurrent Assets:

Restricted Cash and Pooled Cash 1,923,920 - - - - - - 1,923,920

Restricted Investments 732,662 - - - - - - 732,662

Restricted Receivables 510,028 - - - - - - 510,028

Investments 218,249 - - - - - - 218,249

Other Long-Term Assets 453,998 - - - - 221,294 - 675,292

Depreciable Capital Assets and Infrastructure, net 21 131,145 9,853,756 - - - - 9,984,922

Land and Nondepreciable Capital Assets 69,160 1,287 1,771,584 - - - - 1,842,031

Depreciable Capital Assets for Investment 33,055 - - - - - - 33,055

Total Noncurrent Assets 3,941,093 132,432 11,625,340 - - 221,294 - 15,920,159

TOTAL ASSETS 9,370,578 202,817 11,625,340 - - 901 (164,081) 21,035,555

COLORADO BASIC FINANCIAL STATEMENTS 11

Differences Between the Balance Sheet – Governmental Funds and

Governmental Activities on the Government-Wide Statement of Net Position

(A) Management uses Internal Services Funds to report the charges for and the costs of goods and services sold by state agencies solely within the state. Because the sales are primarily to governmental funds, the assets and liabilities of the

Internal Service Funds are included in the governmental activities on the government-wide Statement of Net Position.

Internal Service Funds are reported using proprietary fund-type accounting in the fund-level financial statements. In addition to minor training services provided by the Department of Personnel & Administration, and internal sales within the Department of Transportation and the Department of Public Safety, the State’s Internal Service Funds provide the following goods and services to nearly all state agencies:

Fleet management, Printing and mail services, Information technology and telecommunication services, Building maintenance and management in the capitol complex, Administrative court services, Legal services, and

Others including debt collection.

(B) Capital assets used in governmental activities are not current financial resources, and therefore, they are not included in the fund-level financial statements. However, capital assets are economic resources and are reported in the government-wide Statement of Net Position.

(C) Long-term liabilities such as leases, bonds, notes, mortgages, and Certificates of Participation (including accrued interest) are not due and payable in the current period, and therefore, they are not included in the fund-level financial statements. However, from an economic perspective these liabilities reduce net position and are reported in the

Statement of Net Position. The portion reported as current in the reconciliation is payable within the following fiscal year. Deferred outflows related to debt refunding losses require a similar adjustment. The largest single portion of the long-term balance is related to Transportation Revenue Anticipation Notes issued by the Department of Transportation.

(D) Risk management liabilities are actuarially determined claims and consist of a current and long-term portion. Generally accepted accounting principles (GAAP) list claims and judgments as an exception to the full accrual basis of accounting that constitutes the modified accrual basis of accounting. The current portion (payable within one year) is excluded from the fund-level statements because it is not payable with expendable available financial resources. In this instance, “payable with expendable available financial resources” means the amounts are not accrued as fund liabilities because they are not budgeted in the current year. The long-term portion of the risk management liability is excluded from the fund-level statements because it is not due and payable in the current period.

(E) Other measurement focus adjustments include:

Interfund balances receivable from or payable to fiduciary funds are reported on the fund-level Balance Sheet –

Governmental Funds as due from/to other funds. On the government-wide Statement of Net Position, these amounts are considered external receivables and payables.

Long-term assets and long-term taxes receivable are not available to pay for current period expenditures;

therefore, the related revenue is reported as a deferred inflow of resources on the fund-level Balance Sheet –

Governmental Funds. From an economic perspective, this revenue is earned and the related deferred inflow of resources is removed from the government-wide Statement of Net Position when the revenue is recognized on the government-wide Statement of Activities.

Compensated absences are a GAAP modification of the full accrual basis of accounting similar to claims and judgments discussed above. Therefore, both the current and long-term portions of the liability are shown on the government-wide Statement of Net Position, but they are not reported on the fund-level Balance Sheet –

Governmental Funds.

Claims and Judgments Payable and other long-term liabilities including pension liabilities are not reported on the fund-level Balance Sheet – Governmental Funds because the amounts are not due and payable from current financial resources. However, from an economic perspective, these liabilities reduce net position, and they are therefore reported on the government-wide Statement of Net Position.

(F) All interfund payable balances shown on the fund-level Balance Sheet – Governmental Funds are reported in the internal balances line on the government-wide Statement of Net Position along with all governmental-activities interfund receivables

12 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHWAY

RESOURCE USERS

GENERAL EXTRACTION TAX

REVENUES:

Taxes:

Individual and Fiduciary Income 6,049,782$ -$ -$

Corporate Income 606,441 - -

Sales and Use 2,893,838 - -

Excise 101,874 - 609,680

Other Taxes 224,174 67,073 409

Licenses, Permits, and Fines 20,601 3,533 376,963

Charges for Goods and Services 73,268 6,632 134,185

Rents 223 3 3,318

Investment Income (Loss) 27,294 23,570 11,052

Federal Grants and Contracts 7,891,859 101,526 842,408

Additions to Permanent Funds - - -

Unclaimed Property Receipts - - -

Other 175,922 4,932 102,032

TOTAL REVENUES 18,065,276 207,269 2,080,047

EXPENDITURES:

Current:

General Government 222,191 - 57,685

Business, Community, and Consumer Affairs 163,732 14,402 -

Education 780,238 - -

Health and Rehabilitation 1,649,920 453 11,277

Justice 1,355,017 - 123,635

Natural Resources 38,329 51,538 -

Social Assistance 7,752,117 - -

Transportation - - 1,328,083

Capital Outlay 79,511 2,923 42,837

Intergovernmental:

Cities 66,715 56,497 236,675

Counties 1,297,886 43,049 212,937

School Districts 4,107,412 2,495 -

Special Districts 65,186 20,151 46,917

Federal 2,298 1,697 -

Other 25,656 2,209 582

Debt Service 58,681 7 -

TOTAL EXPENDITURES 17,664,889 195,421 2,060,628

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 400,387 11,848 19,419

OTHER FINANCING SOURCES (USES):

Transfers-In 3,903,296 4,488 204,713

Transfers-Out (4,473,718) (71,044) (181,703)

Sale of Capital Assets 10,264 - -

Insurance Recoveries 3,455 - 432

Bond/COP Premium Refunding Proceeds 1 - -

TOTAL OTHER FINANCING SOURCES (USES) (556,702) (66,556) 23,442

NET CHANGE IN FUND BALANCES (156,315) (54,708) 42,861

FUND BALANCE, FISCAL YEAR BEGINNING 1,175,388 1,367,206 988,560

Prior Period Adjustment (See Note 29A) (6,004) - -

FUND BALANCE, FISCAL YEAR END 1,013,069$ 1,312,498$ 1,031,421$

COLORADO BASIC FINANCIAL STATEMENTS 13

OTHER

CAPITAL STATE GOVERNMENTAL

PROJECTS EDUCATION FUNDS TOTAL

-$ 476,703$ -$ 6,526,485$

- 45,897 - 652,338

- - 45,223 2,939,061

- - 188,980 900,534

1,543 - 158,600 451,799

3 - 408,718 809,818

- - 930,320 1,144,405

- - 139,206 142,750

4,023 5,791 67,885 139,615

7,878 - 203,545 9,047,216

- - 80 80

- - 65,110 65,110

127 238 37,632 320,883

13,574 528,629 2,245,299 23,140,094

21,009 - 23,133 324,018

1,583 - 294,148 473,865

2,362 44,742 25,101 852,443

193 - 121,771 1,783,614

5,526 - 207,441 1,691,619

- - 17,131 106,998

7 - 972,766 8,724,890

- - 3,035 1,331,118

46,593 34 8,571 180,469

- - 64,676 424,563

- - 101,634 1,655,506

- 841,125 43,843 4,994,875

- - 12,418 144,672

- - 380 4,375

- 204 49,796 78,447

3,637 - 216,962 279,287

80,910 886,105 2,162,806 23,050,759

(67,336) (357,476) 82,493 89,335

345,795 25,615 465,120 4,949,027

(180,195) (49,957) (336,891) (5,293,508)

- - (3,527) 6,737

747 - - 4,634

- - - 1

166,347 (24,342) 124,702 (333,109)

99,011 (381,818) 207,195 (243,774)

336,680 686,258 2,292,698 6,846,790

(793) - - (6,797)

434,898$ 304,440$ 2,499,893$ 6,596,219$

14 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES RECONCILED TO

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2016

(A) (B) (C) (D)

(DOLLARS IN THOUSANDS) OTHER

TOTAL INTERNAL CAPITAL LONG-TERM MEASUREMENT STATEMENT OF

GOVERNMENTAL SERVICE RELATED DEBT FOCUS ACTIVITIES

FUNDS FUNDS ITEMS TRANSACTIONS ADJUSTMENTS TOTALS

REVENUES:

Taxes:

Individual and Fiduciary Income 6,526,485$ -$ -$ -$ 11,876$ 6,538,361$

Corporate Income 652,338 - - - 37,319 689,657

Sales and Use 2,939,061 - - - 1,767 2,940,828

Excise 900,534 - - - (578) 899,956

Other Taxes 451,799 - - - (10,342) 441,457

Licenses, Permits, and Fines 809,818 - - - 299 810,117

Charges for Goods and Services 1,144,405 - - - 9 1,144,414

Rents 142,750 - - - - 142,750

Investment Income (Loss) 139,615 220 - - (572) 139,263

Federal Grants and Contracts 9,047,216 - - - - 9,047,216

Additions to Permanent Funds 80 - - - - 80

Unclaimed Property Receipts 65,110 - - - - 65,110

Other 320,883 - - - (4,764) 316,119

TOTAL REVENUES 23,140,094 220 - - 35,014 23,175,328

EXPENDITURES:

Current:

General Government 324,018 1,282 37,254 - 1,701 364,255

Business, Community, and Consumer Affairs 473,865 5,429 11,280 - (26,096) 464,478

Education 852,443 92 40,376 - (106) 892,805

Health and Rehabilitation 1,783,614 1,118 44,675 - 2,606 1,832,013

Justice 1,691,619 973 186,660 - 3,039 1,882,291

Natural Resources 106,998 1,237 6,198 - 693 115,126

Social Assistance 8,724,890 7,480 12,213 - (2,864) 8,741,719

Transportation 1,331,118 828 401,527 - (138) 1,733,335

Capital Outlay 180,469 - (617,891) - - (437,422)

Intergovernmental:

Cities 424,563 - - - - 424,563

Counties 1,655,506 - 60 - - 1,655,566

School Districts 4,994,875 - - - - 4,994,875

Special Districts 144,672 - - - - 144,672

Federal 4,375 - - - - 4,375

Other 78,447 - - - - 78,447

Debt Service 279,287 2,612 - (210,477) - 71,422

TOTAL EXPENDITURES 23,050,759 21,051 122,352 (210,477) (21,165) 22,962,520

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 89,335 (20,831) (122,352) 210,477 56,179 212,808

OTHER FINANCING SOURCES (USES):

Transfers-In 4,949,027 4,502 - - - 4,953,529

Transfers-Out (5,293,508) (7,007) - - - (5,300,515)

Bond/COP Premium/Discount - - - 1,383 - 1,383

Sale of Capital Assets 6,737 - (2,279) - - 4,458

Insurance Recoveries 4,634 - - - - 4,634

Bond/COP Premium Refunding Proceeds 1 - - - - 1

TOTAL OTHER FINANCING SOURCES (USES) (333,109) (2,505) (2,279) 1,383 - (336,510)

Internal Service Fund Charges to BTAs - 398 - - - 398

NET CHANGE FOR THE YEAR (243,774) (22,938) (124,631) 211,860 56,179 (123,304)

Prior Period Adjustment (See Note 29A) (6,797) - - - - (6,797)

TOTAL CHANGE FOR THE CURRENT YEAR

WITH PRIOR PERIOD ADJUSTMENT

$ (250,571) $ (22,938) $ (124,631) $ 211,860 $ 56,179 $ (130,101)

COLORADO BASIC FINANCIAL STATEMENTS 15

Differences Between the Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds and Governmental Activities on the Government-Wide Statement of Activities

(A) Management uses Internal Services Funds to report charges for and the costs of goods and services sold by state agencies solely within the state. Internal Service Funds are intended to operate on the cost reimbursement basis and should break even each period. If an

Internal Service Fund makes a profit, the other funds of the State have been overcharged. If an Internal Service Fund has an operating loss, the other funds of the State have been undercharged. In order to show the true cost of services purchased from Internal Service

Funds, an adjustment is made that allocates the net revenue/expense of each Internal Service Fund to the programs that purchased the service. Investment income, debt service, and transfers of the Internal Service Fund are not allocated. In addition to minor training services provided by the Department of Personnel & Administration, and internal sales within the Department of Transportation and the Department of Public Safety, the State’s Internal Service Funds provide the following goods and services to nearly all state agencies:

Fleet management, Printing and mail services, Information technology services and telecommunication services, Building maintenance and management in the capitol complex, Administrative court services, Legal services, and

Others including debt collection.

(B) The following adjustments relate to capital assets:

Capital assets, received as donations, are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds because they are not current financial resources. However, such donations increase net position and are reported on both the government-wide Statement of Net Position and Statement of Activities.

Depreciation is not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances –

Governmental Funds, but it is reported for the economic perspective on which the government-wide Statement of Activities is presented.

Expenditures reported for capital outlay on the fund-level Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds are generally reported as a conversion of cash to a capital asset on the government-wide

Statement of Net Position. They are not reported as expenses on the government-wide Statement of Activities.

On the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds all cash received on disposal of capital assets is reported as a gain on sale of capital assets. On the government-wide Statement of

Activities the reported gain or loss on sale is based on the carrying value of the asset as well as the cash received.

(C) The following adjustments relate to debt issuance and debt service including leases:

Payments on principal and debt refunding payments are reported as expenditures and other financing uses, respectively, on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. These payments are reported as reductions of lease, bond, and other debt liability balances on the government-wide Statement of

Net Position and are not reported on the government-wide Statement of Activities.

Amortization of debt premium/discount and gain/loss on refunding are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, but are reported on the government-wide Statement of

Activities.

Lease proceeds, issuance of debt, and debt refunding proceeds are all reported as other financing sources on the fund-level

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. From an economic perspective lease proceeds, debt issuances, and debt refunding proceeds are reported as liabilities on the government-wide

Statement of Net Position and are not reported on the government-wide Statement of Activities.

(D) Other measurement focus adjustments include:

Long-term taxes receivable and certain other long-term assets are offset by deferred inflows or unearned revenue and are not part of fund balance on the fund-level Balance Sheet – Governmental Funds; however, from a full accrual perspective, changes in the fund-level unearned revenue balances result in adjustments to revenue that are recognized and reported on the government-wide Statement of Activities.

Compensated absences accruals, pension liabilities, and claims and judgments are not normally expected to be liquidated from expendable available financial resources; and therefore, they are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. However, from a full accrual perspective, these are expenses that are reported on the government-wide Statement of Activities.

16 COLORADO BASIC FINANCIAL STATEMENTS

PROPRIETARY FUNDS

JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

ASSETS:

Current Assets:

Cash and Pooled Cash 1,236,180$ 757,410$

Investments 391,521 -

Premiums Receivable, net - 123,640

Student and Other Receivables, net 575,920 4,099

Due From Other Governments 64,304 3,549

Due From Other Funds 15,807 -

Due From Component Units 18,188 -

Inventories 38,274 -

Prepaids, Advances and Deposits 17,925 -

Total Current Assets 2,358,119 888,698

Noncurrent Assets:

Restricted Cash and Pooled Cash 385,552 -

Restricted Investments 167,540 -

Restricted Receivables - -

Investments 1,908,039 -

Other Long-Term Assets 127,593 -

Depreciable Capital Assets and Infrastructure, net 6,058,575 11,441

Land and Nondepreciable Capital Assets 1,068,473 -

Total Noncurrent Assets 9,715,772 11,441

TOTAL ASSETS 12,073,891 900,139

DEFERRED OUTFLOW OF RESOURCES: 586,713 5,361

LIABILITIES:

Current Liabilities:

Accounts Payable and Accrued Liabilities 700,840 3,905

Due To Other Governments - 1

Due To Other Funds 2,797 133

Due To Component Units 645 -

Unearned Revenue 255,408 908

Compensated Absences Payable 21,604 -

Leases Payable 8,681 -

Notes, Bonds, and COPs Payable 141,174 124,965

Other Current Liabilities 87,260 13,228

Total Current Liabilities 1,218,409 143,140

Noncurrent Liabilities:

Due to Other Funds - -

Deposits Held In Custody For Others - -

Accrued Compensated Absences 281,135 -

Claims and Judgments Payable 39,657 -

Capital Lease Payable 44,182 -

Derivative Instrument Liability 13,222 -

Notes, Bonds, and COPs Payable 4,127,739 399

Due to Component Units 1,631 -

Net Pension Liability 3,496,484 11,026

Other Postemployment Benefits 289,133 -

Other Long-Term Liabilities 28,534 -

Total Noncurrent Liabilities 8,321,717 11,425

TOTAL LIABILITIES 9,540,126 154,565

DEFERRED INFLOW OF RESOURCES: 88,480 407

NET POSITION:

Net investment in Capital Assets: 3,793,312 11,441

Restricted for:

Education 462,636 -

Unemployment Insurance - 739,087

Debt Service 67,358 -

Emergencies - -

Permanent Funds and Endowments:

Expendable 157,611 -

Nonexpendable 83,274 -

Other Purposes - -

Unrestricted (1,532,193) -

TOTAL NET POSITION 3,031,998$ 750,528$

COLORADO BASIC FINANCIAL STATEMENTS 17

BUSINESS-TYPE ACTIVITIES GOVERNMENTAL

ENTERPRISE FUNDS ACTIVITIES

INTERNAL

STATE OTHER SERVICE

LOTTERY ENTERPRISES TOTAL FUNDS

50,088$ 480,315$ 2,523,993$ 45,644$

- 667 392,188 -

- - 123,640 -

21,082 39,565 640,666 904

- 25,418 93,271 264

- 4,487 20,294 18,781

- - 18,188 -

1,472 15,002 54,748 712

4,613 6,218 28,756 4,080

77,255 571,672 3,895,744 70,385

- 72,840 458,392 -

- - 167,540 -

- 40,009 40,009 -

- 33,001 1,941,040 -

- 1,832 129,425 -

438 988,189 7,058,643 131,145

- 582,879 1,651,352 1,287

438 1,718,750 11,446,401 132,432

77,693 2,290,422 15,342,145 202,817

2,985 58,500 653,559 58,747

3,537 54,513 762,795 32,760

18 39,062 39,081 -

31,916 847 35,693 4,521

- - 645 -

- 49,156 305,472 12,113

- 1,157 22,761 427

- 451 9,132 20,214

- 995 267,134 -

38,540 737 139,765 270

74,011 146,918 1,582,478 70,305

- 21,021 21,021 -

- 20 20 -

748 11,482 293,365 9,792

- - 39,657 -

- 3,812 47,994 85,338

- - 13,222 -

- 351,953 4,480,091 -

- - 1,631 -

25,257 423,973 3,956,740 364,594

- - 289,133 -

35 - 28,569 -

26,040 812,261 9,171,443 459,724

100,051 959,179 10,753,921 530,029

947 158,139 247,973 4,585

438 1,262,474 5,067,665 26,880

- - 462,636 -

- - 739,087 -

- 18,259 85,617 -

- 34,000 34,000 -

- - 157,611 -

- - 83,274 -

- 101,209 101,209 -

(20,758) (184,338) (1,737,289) (299,930)

(20,320)$ 1,231,604$ 4,993,810$ (273,050)$

18 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

OPERATING REVENUES:

Unemployment Insurance Premiums -$ 602,604$

License and Permits - 102

Tuition and Fees 2,765,445 -

Scholarship Allowance for Tuition and Fees (613,735) -

Sales of Goods and Services 2,026,876 -

Scholarship Allowance for Sales of Goods & Services (22,981) -

Investment Income (Loss) 1,532 -

Rental Income 14,688 -

Gifts and Donations 49,788 -

Federal Grants and Contracts 1,014,391 24,148

Intergovernmental Revenue 8,121 -

Other 359,997 -

TOTAL OPERATING REVENUES 5,604,122 626,854

OPERATING EXPENSES:

Salaries and Fringe Benefits 4,303,841 12,046

Operating and Travel 1,384,884 513,842

Cost of Goods Sold 140,258 -

Depreciation and Amortization 402,691 369

Intergovernmental Distributions 34,008 2

Debt Service - -

Prizes and Awards 282 -

TOTAL OPERATING EXPENSES 6,265,964 526,259

OPERATING INCOME (LOSS) (661,842) 100,595

NONOPERATING REVENUES AND (EXPENSES):

Taxes - -

Fines and Settlements 12 3,709

Investment Income (Loss) 48,041 17,497

Rental Income 12,235 1

Gifts and Donations 207,762 -

Intergovernmental Distributions (25,561) -

Federal Grants and Contracts 265,969 -

Gain/(Loss) on Sale or Impairment of Capital Assets (5,496) -

Insurance Recoveries from Prior Year Impairments 261 -

Debt Service (144,263) (3,662)

Other Expenses (3,587) -

Other Revenues 3,713 -

TOTAL NONOPERATING REVENUES (EXPENSES) 359,086 17,545

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (302,756) 118,140

CONTRIBUTIONS, TRANSFERS, AND OTHER ITEMS:

Capital Contributions 54,244 10,130

Additions to Permanent Endowments 20 -

Transfers-In 418,836 -

Transfers-Out (7,851) -

TOTAL CONTRIBUTIONS AND TRANSFERS 465,249 10,130

CHANGE IN NET POSITION 162,493 128,270

NET POSITION - FISCAL YEAR BEGINNING 2,874,814 622,258

Prior Period Adjustments (See Note 29A) (5,309) -

NET POSITION - FISCAL YEAR ENDING 3,031,998$ 750,528$

COLORADO BASIC FINANCIAL STATEMENTS 19

ENTERPRISE FUNDS ACTIVITIES

INTERNAL

STATE OTHER SERVICE

LOTTERY ENTERPRISES TOTAL FUNDS

-$ -$ 602,604$ -$

64 120,138 120,304 -

- 1,686 2,767,131 -

- - (613,735) -

594,413 213,673 2,834,962 348,488

- - (22,981) -

- 10,332 11,864 -

- 2,024 16,712 15,372

- - 49,788 -

- 409,180 1,447,719 -

- 174,896 183,017 -

1,576 8,849 370,422 204

596,053 940,778 7,767,807 364,064

10,126 225,693 4,551,706 215,577

58,897 442,304 2,399,927 132,032

13,251 41,642 195,151 7,459

443 26,999 430,502 29,167

- 11,403 45,413 1,592

- 12,223 12,223 -

370,514 1,064 371,860 13

453,231 761,328 8,006,782 385,840

142,822 179,450 (238,975) (21,776)

- 39,401 39,401 -

- 380 4,101 -

813 6,463 72,814 220

- 11,129 23,365 -

- 1,327 209,089 -

(63,715) - (89,276) -

- - 265,969 -

(4) (28,009) (33,509) 1,824

- (187) 74 -

- (15,143) (163,068) (2,610)

- (309) (3,896) -

- 6 3,719 4

(62,906) 15,058 328,783 (562)

79,916 194,508 89,808 (22,338)

- 828 65,202 1,908

- - 20 -

- 46,022 464,858 4,502

(80,290) (30,456) (118,597) (7,007)

(80,290) 16,394 411,483 (597)

(374) 210,902 501,291 (22,935)

(19,946) 1,020,702 4,497,828 (250,115)

- - (5,309) -

(20,320)$ 1,231,604$ 4,993,810$ (273,050)$

20 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from:

Tuition, Fees, and Student Loans 2,179,595$ -$

Fees for Service 1,774,156 828

Sales of Products 12,702 -

Gifts, Grants, and Contracts 1,607,296 23,050

Loan and Note Repayments 448,725 -

Unemployment Insurance Premiums - 625,923

Income from Property 26,923 -

Other Sources 136,264 -

Cash Payments to or for:

Employees (3,795,034) (11,777)

Suppliers (1,266,361) (1,821)

Sales Commissions and Lottery Prizes - -

Unemployment Benefits - (504,848)

Scholarships (100,815) -

Others for Student Loans and Loan Losses (461,674) -

Other Governments (34,008) (2)

Other (94,369) -

NET CASH PROVIDED BY OPERATING ACTIVITIES 433,400 131,353

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers-In 2,431,542 -

Transfers-Out (2,176,636) -

Receipt of Deposits Held in Custody 502,191 -

Release of Deposits Held in Custody (503,543) -

Gifts and Grants for Other Than Capital Purposes 207,782 -

Intergovernmental Distributions (25,561) -

NonCapital Debt Proceeds 651 -

NonCapital Debt Service Payments (109,192) (125,364)

NET CASH FROM NONCAPITAL FINANCING ACTIVITIES 327,234 (125,364)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of Capital Assets (1,023,432) (166)

Capital Contributions 11,184 -

Capital Gifts, Grants, and Contracts 15,388 -

Proceeds from Sale of Capital Assets 5,414 3,526

Capital Debt Proceeds 535,031 124,970

Capital Debt Service Payments (389,803) (128,877)

Capital Lease Payments (11,576) -

NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (857,794) (547)

COLORADO BASIC FINANCIAL STATEMENTS 21

ENTERPRISE FUNDS ACTIVITIES

STATE OTHER INTERNAL

LOTTERY ENTERPRISE TOTALS SERVICE FUNDS

-$ 1,649$ 2,181,244$ -$

- 258,856 2,033,840 331,925

594,412 60,233 667,347 1,208

- 425,379 2,055,725 70

- 420 449,145 -

- - 625,923 -

- 13,106 40,029 15,408

1,640 103,311 241,215 12,234

(10,185) (213,033) (4,030,029) (210,436)

(27,734) (219,304) (1,515,220) (144,343)

(403,063) (7,168) (410,231) (639)

- - (504,848) -

- - (100,815) -

- (280,887) (742,561) -

- (11,612) (45,622) (1,592)

(438) (37,107) (131,914) (134)

154,632 93,843 813,228 3,701

434 55,095 2,487,071 7,663

(80,724) (38,552) (2,295,912) (8,223)

- 760 502,951 267

- (727) (504,270) (70)

- 1,027 208,809 -

(63,715) - (89,276) -

- 23,660 24,311 -

- (515) (235,071) -

(144,005) 40,748 98,613 (363)

(199) (405,615) (1,429,412) (24,612)

- - 11,184 -

- - 15,388 -

391 139,701 149,032 50,833

- 440 660,441 176

- (19,479) (538,159) (84)

- (230) (11,806) (29,752)

192 (285,183) (1,143,332) (3,439)

22 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2016 (Continued)

BUSINESS-TYPE ACTIVITIES

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and Dividends on Investments 118,779 17,495

Proceeds from Sale/Maturity of Investments 2,386,561 -

Purchases of Investments (2,310,376) -

Increase(Decrease) from Unrealized Gain(Loss) on Investments (72,406) 2

NET CASH FROM INVESTING ACTIVITIES 122,558 17,497

NET INCREASE (DECREASE) IN CASH AND POOLED CASH 25,398 22,939

CASH AND POOLED CASH , FISCAL YEAR BEGINNING 1,601,643 734,471

Prior Period Adjustment (See Note 29) (5,309) -

CASH AND POOLED CASH, FISCAL YEAR END 1,621,732$ 757,410$

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED BY OPERATING ACTIVITIES

Operating Income (Loss) (661,842)$ 100,595$

Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities:

Depreciation 402,691 369

Investment/Rental Income and Other Revenue in Operating Income - -

Net Periodic Pension Cost - -

Rents, Fines, Donations, and Grants and Contracts in NonOperating 283,296 3,710

(Gain)/Loss on Disposal of Capital and Other Assets (371) -

Compensated Absences 26,461 -

Insurance Premiums and State Subsidy - -

Claims and General Insurance Expenses Paid - -

Interest and Other Expense in Operating Income 10,618 10

Provision for Bad Debts - -

Net Changes in Assets, Deferred Outflows, Liabilities, and Deferred

Inflows Related to Operating Activities:

(Increase) Decrease in Operating Receivables (178,523) 20,376

(Increase) Decrease in Inventories 1,640 -

(Increase) Decrease in Other Operating Assets and Deferred Outflows 720 -

Increase (Decrease) in Accounts Payable 55,693 2,014

Increase (Decrease) in Other Operating Liabilities and Deferred Inflows 493,017 4,279

NET CASH PROVIDED BY OPERATING ACTIVITIES 433,400$ 131,353$

SUPPLEMENTARY INFORMATION - NONCASH TRANSACTIONS:

Capital Assets Funded by the Capital Projects Fund 815 -

Capital Assets Acquired by Grants or Donations and Payable Increases 74,120 -

Unrealized Gain/Loss on Investments and Interest Receivable Accruals 22,185 -

Loss on Disposal of Capital and Other Assets 4,112 -

Disposal of Capital Assets 12,746 -

Amortization of Debt Valuation Accounts and Interest Payable Accruals 39,972 239

Assumption of Capital Lease Obligation or Mortgage 12,789 -

Financed Debt Issuance Costs 1,224 -

Fair Value Change in Derivative Instrument 3,708 -

COLORADO BASIC FINANCIAL STATEMENTS 23

ENTERPRISE FUNDS ACTIVITIES

STATE OTHER INTERNAL

LOTTERY ENTERPRISE TOTALS SERVICE FUNDS

605 14,665 151,544 113

- 142,282 2,528,843 -

- (35,211) (2,345,587) -

208 2,155 (70,041) 107

813 123,891 264,759 220

11,632 (26,701) 33,268 119

38,456 579,856 2,954,426 45,525

- - (5,309) -

50,088$ 553,155$ 2,982,385$ 45,644$

142,822$ 179,450 (238,975)$ (21,776)$

443 26,999 430,502 29,167

- (10,397) (10,397) -

- 51,088 338,094 4

- (31) (402) 49

(9) 554 27,006 143

- 3,890 14,518 3,063

(671) (17,181) (175,999) (10,294)

(347) 1,909 3,202 152

44 (909) (145) (3,636)

(138) (185,289) (127,720) (4,190)

12,488 43,760 553,544 11,019

154,632$ 93,843$ 813,228$ 3,701$

- 1,708 2,523 1,870

- 1,265 75,385 -

- - 22,185 -

4 1,207 5,323 313

- - 12,746 -

- 2,476 42,687 172

- - 12,789 20,230

- - 1,224 -

- - 3,708 -

24 COLORADO BASIC FINANCIAL STATEMENTS

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

JUNE 30, 2016

(DOLLARS IN THOUSANDS) PENSION AND PRIVATE

BENEFIT PURPOSE

TRUST TRUST AGENCY

ASSETS:

Current Assets:

Cash and Pooled Cash 84,486$ 199,443$ 495,848$

Investments - 633 -

Taxes Receivable, net - - 167,950

Other Receivables, net 2,174 18,369 333

Intrafund Receivables 8 - -

Due From Other Funds 1,008 - 7,887

Inventories - - 5

Noncurrent Assets:

Investments:

Government Securities - 27,052 -

Repurchase Agreements - 686 -

Mutual Funds - 5,751,132 -

Other Investments - 762,241 -

Other Long-Term Assets - - 12,130

TOTAL ASSETS 87,676 6,759,556 684,153$

LIABILITIES:

Current Liabilities:

Tax Refunds Payable - - 8,649

Accounts Payable and Accrued Liabilities 17,166 15,357 1,001

Due To Other Governments - - 293,451

Unearned Revenue - 7,816 -

Claims and Judgments Payable 15,766 - 107

Other Current Liabilities 516 - 323,112

Noncurrent Liabilities:

Deposits Held In Custody For Others - 3,713 57,120

Accrued Compensated Absences 38 - -

Other Long-Term Liabilities - - 713

TOTAL LIABILITIES 33,486 26,886 684,153$

NET POSITION:

Held in Trust for:

Pension/Benefit Plan Participants 54,190 -

Individuals, Organizations, and Other Entities - 6,732,670

TOTAL NET POSITION 54,190$ 6,732,670$

COLORADO BASIC FINANCIAL STATEMENTS 25

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) PENSION AND PRIVATE

BENEFIT PURPOSE

TRUST TRUST

ADDITIONS:

Additions By Participants -$ 1,129,100$

Member Contributions 89,076 -

Employer Contributions 289,096 -

Investment Income/(Loss) 346 31,078

Unclaimed Property Receipts - 33,113

Other Additions 3,623 3,234

Transfers-In 8,173 -

TOTAL ADDITIONS 390,314 1,196,525

DEDUCTIONS:

Distributions to Participants - 285,583

Health Insurance Premiums Paid 156,849 -

Health Insurance Claims Paid 170,156 -

Other Benefits Plan Expense 26,175 -

Payments in Accordance with Trust Agreements - 660,225

Other Deductions 21,964 -

Transfers-Out 7,199 86

TOTAL DEDUCTIONS 382,343 945,894

CHANGE IN NET POSITION 7,971 250,631

NET POSITION - FISCAL YEAR BEGINNING 46,219 6,482,550

Prior Period Adjustments (Note 29) 0 (511)

NET POSITION - FISCAL YEAR ENDING 54,190$ 6,732,670$

26 COLORADO BASIC FINANCIAL STATEMENTS

COMPONENT UNITS

JUNE 30, 2016

(DOLLARS IN THOUSANDS) COLORADO

WATER RESOURCES UNIVERSITY

AND POWER OF

DEVELOPMENT COLORADO

AUTHORITY FOUNDATION

ASSETS:

Current Assets:

Cash and Pooled Cash 211,598$ 18,493$

Contributions Receivable, net - 34,036

Other Receivables, net 79,422 3

Due From Other Governments 3,081 -

Prepaids, Advances and Deposits - 505

Total Current Assets 294,101 53,037

Noncurrent Assets:

Restricted Cash and Pooled Cash 109,778 -

Restricted Investments 158,737 -

Restricted Receivables 2,532 -

Investments - 1,524,867

Contributions Receivable, net - 51,749

Other Long-Term Assets 898,355 -

Depreciable Capital Assets and Infrastructure, net 21 341

Land and Nondepreciable Capital Assets - -